Don’t Miss Out on This Credit for College Costs
The American Opportunity Credit is worth up to $2,500 per student for each of the first four years of college.

My son is a junior in college, and I pay his tuition. Can I take the American Opportunity Credit when I file my 2013 taxes?
Yes, as long as you meet the income requirements and your son was enrolled at least half-time for one academic period during the year in a program leading to a degree, certificate or other recognized educational credential. To qualify for the American Opportunity Credit, your adjusted gross income for 2013 must have been less than $180,000 if you’re married filing jointly or less than $90,000 if you’re single or filing as head of household, and you must claim your son as a dependent on your tax return.
The credit was scheduled to expire at the end of 2012, but Congress extended it through 2017. It is worth up to $2,500 per student for each of the first four years of college. It is calculated as 100% of the first $2,000 you pay for eligible expenses, plus 25% of the next $2,000 of eligible expenses. Eligible expenses include tuition, fees and books (room and board doesn’t count). It’s a credit, rather than a deduction, which means that it lowers your tax bill dollar- for- dollar. You can claim the credit by filing IRS Form 8863 with your Form 1040. For more information, see the Instructions for Form 8863.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Students who go to school less than half-time or are in graduate school may qualify for the Lifetime Learning Credit, worth up to $2,000 per return if you spend $10,000 or more in eligible expenses for the year. (You can’t claim the Lifetime Learning Credit for the same student in the same year you claim the American Opportunity Credit.) See IRS Publication 970, Tax Benefits for Education, for details.
Because your son is now a junior, you may have qualified for the American Opportunity Credit for his first two years of college, too. If you missed out on the credit in those years, you can file amended returns and get the money back. For more information about amended returns, see the Instructions for Form 1040X.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
What About Those ‘Guaranteed’ Life Insurance Ads?
Guaranteed life insurance policies can sound tempting if you've been declined for insurance elsewhere. Here are four downsides and one alternative.
-
13 Answers to Pressing Social Security Questions
From smart claiming strategies for couples to tips on maximizing your monthly check, we have advice that can help you.
-
Ask the Editor, June 27: Tax Questions on Disaster Losses, IRAs
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on paper checks, hurricane losses, IRAs and timeshares.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The latest GOP tax bill might make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Cuts in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s proposed tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Ask the Editor, June 20: Questions on Tax Deductions and IRAs
Ask the Editor In our latest Ask the Editor round-up, Joy Taylor, The Kiplinger Tax Letter Editor, answers four questions on deductions, tax proposals and IRAs.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans released proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions are already stirring debate.
-
Senate Seeks $6,000 'Bonus' Tax Deduction for Those Age 65 and Older
Tax Reform Under Trump’s ‘big bill,’ the Senate Finance Committee has proposed a larger bonus tax deduction for older adults than the House. Will it pass?
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.